Corvis Corp. losses narrow to 20 cents a share in 1Q

But revenue plunges 90% from a year ago

April 26, 2002|By Stacey Hirsh | Stacey Hirsh,SUN STAFF

Corvis Corp., the Columbia-based maker of fiber-optic equipment, reported yesterday that its losses narrowed in the first quarter even as revenue plunged 90 percent.

The company's net loss was $71.0 million, or 20 cents per share, compared with a net loss of $100.8 million, or 29 cents per share in the corresponding quarter last year.

Revenue was $8.7 million for the quarter that ended March 30, compared with $84.1 million for the first quarter of 2001.

Adjusted net loss - which does not include restructuring and other charges - was $41.3 million, or 11 cents per share, compared with adjusted net loss of $23.0 million, or 7 cents per share, for the first quarter of 2001.

The earnings met analysts' expectations, according to Zacks Investment Research.

Lynn Anderson, Corvis' chief financial officer, told analysts during a conference call yesterday that revenue for the second quarter was expected to be between $3 million and $6 million. He attributed the low numbers mostly to market conditions in the struggling telecommunications sector.

The Columbia telecommunications company recorded $6.9 million in restructuring and other charges, which included the write-down of extra materials, excess purchase commitments and discontinuing some product lines. The charges also included the consolidation of extra facilities, the write-down of unused equipment and layoffs.

Corvis cut about 120 jobs last month, according to filings with the U.S. Securities and Exchange Commission.

Corvis also said yesterday that France Telecom SA has deployed its Corvis-supplied equipment. France Telecom, one of Corvis' five customers, was an unnamed customer before yesterday.

The earnings were released after the close of market yesterday. Shares of Corvis closed at $1.25, down 1 cent.

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